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TMI Blog2024 (7) TMI 1599X X X X Extracts X X X X X X X X Extracts X X X X ..... y adjudged in the favour of appellant without appeal being preferred by the revenue. This being a statement of demand no new ground has been stated in the statement of demand. Thus when revenue accepts the earlier decisions dropping the show cause notice and statement of demands for the past period on the same issue, judicial precedent needs to be followed.
Conclusion - i) The appellant's availing of CENVAT credit was legitimate. ii) The jurisdiction to adjudicate the admissibility of CENVAT credit distributed by an ISD lies with the ISD's jurisdictional authority.
Impugned order has no merits and needs to be set aside - Appeal allowed. X X X X Extracts X X X X X X X X Extracts X X X X ..... vour of the Appellant by the learned Commissioner (Appeals). On the same issue a statement of demand dated 28.08.2018 was issued to the Appellant asking them to show cause as to why:- (i) The CENVAT credit of Rs. 3,83,22,537/- taken during the period from Sept' 2016 to June 2017, should not be disallowed and recovered from them under Rule 14 of the CENVAT Credit Rules, 2004 read with Section 11A(1) of the Central Excise Act, 1944. (ii) Interest at the appropriate rates on the said amount should not be charged and recovered from them under Rule 14 of the CENVAT Credit Rules, 2004 read with Section 11AA of the Central Excise Act, 1944. (iii)Penalty under Rule 14 of the CENVAT Credit Rules, 2004 read with Section 11AC of the Central Excise Act, 1944 should not be imposed on them for contravention of the afore mentioned provisions of law. 2.4 This statement of demand has been adjudicated afresh by the impugned order. Aggrieved Appellant is before this Tribunal. 3. We have heard Shri Monish Panda learned Advocate appearing for the Appellant and Shri Manish Raj learned Departmental Authorized Representative appearing for the Revenue. 3.1 Arguing for the Appellant learned ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ises and pay freight on such "outward transportation". ● Being the depots of various units of the Company, these are registered as the ISD's, which receive invoices issued under Rule 4A of the Service Tax Rules, 1994, and inter alia issue invoices to the HCCBPL for the purposes of distribution of the credit of Service tax paid on the said services to the HCCBPL in accordance with the provisions of the CENVAT Rules. The party contended that this office does not have the jurisdiction to issue this Statement of Demand as according to the party the jurisdiction lies with the Central Excise Authorities having jurisdiction over the Input Service Distributor units. 10. It is the contention of the party that in view of the definition of the ISD, it is evident that that an input service distributor receives input service invoices in its independent capacity as an office of the manufacturer and thus it is their jurisdiction to adjudicate and investigate the admissibility of the CENVAT credit on various input services availed by these depots/offices of the HCCBPL. 11. I find that the above contention of the party has no merit. In the instant case there is no dispute as t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... arly says that he is not merely a dealer. The input service distributor has to be an office of the manufacturer or producer of final products or provider of output service who will distribute the credit to his manufacturing units or service providing units as the case may be. The dealer buys the manufactured goods on which duties have been paid and passes on the actual duty paid by issue of an invoice. He does not take any responsibility as regards eligibility of Cenvat credit by his buyers. He may not even be aware as to whether buyer avails the Cenvat credit or not. He does not produce any input services which he is required to distribute among others. Whereas an input service distributor independently receives invoice and in fact he could be compared to a buyer of goods or service from the manufacturer or a output service provider. The concept of input service distributor has been introduced in view of the fact that definition of input service includes "includes services used in relation to setting up, modernization, renovation or repairs of a factory, premises of provider of output service or an office relating to such factory or premises, advertisement or sales promotion, mark ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to be held that it is the responsibility of the jurisdictional officer with whom input service distributor has registered to decide the dispute regarding eligibility or otherwise of the service tax credit that the input service distributor has taken and proposes to pass on to others." b. Castrol India Ltd. [2013 (291) E.L.T. 469 (Tri.- Ahmd.)]. "3. Learned counsel submitted that assessee had availed Service Tax credit based on invoices issued by the ISD and not on the basis of invoices of service providers. Since the credit has been availed on the basis of ISD invoices, demand, if any, regarding admissibility of credit as such, should have been raised at the end of ISD and not at the unit level. 4. According to Rule 2(m) of Cenvat Credit Rules, input service distributor means, an office of the manufacturer or purchaser of final products or provider of output service which receives invoices issued under Rule 4(A) of the Service Tax Rules, 1994 towards purchase of input services and issue invoice, bill or, as the case may be, challans for the purpose of distributing the credit of service tax paid on said services to such manufacturer or purchaser or provider as the case may ..... X X X X Extracts X X X X X X X X Extracts X X X X
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